GIHOC making losses despite high alcohol demand — Finance Minister expresses shock

The Minister of Finance, Dr Cassiel Ato Forson has expressed concern over the continuous financial struggles of GIHOC Distilleries Company Limited, a state-owned alcohol producer, despite the high demand for alcoholic beverages in Ghana.

Speaking at the President Mahama Meets CEOs of Specified Entities under SIGA event in Accra on March 13, 2025, Dr Forson revealed that GIHOC Distilleries recorded a loss of GH¢25.1 million in 2022 and GH¢25.5 million in 2023, compounding the financial woes of state-owned enterprises (SOEs).

“Mr President, this one surprises me. Even the alcohol-making company, the alcohol-making company is making losses, losses,” he remarked, highlighting the irony of an alcohol business struggling in a thriving market.

SOEs in deep financial crisis

GIHOC Distilleries is not the only state entity facing financial difficulties. Dr Forson noted that major institutions such as the Electricity Company of Ghana (ECG), Ghana Grid Company (GRIDCo), and COCOBOD have also reported significant losses, worsening the financial burden on the state.

He further disclosed that the Ghana Ports and Harbours Authority (GPHA), once one of the few profitable SOEs, has now joined the list of loss-making entities.

“In 2018, GPHA was one of only two SOEs paying dividends, but by 2024, it had started making losses,” he revealed.

The Finance Minister stated that in 2024, only three SOEs—State Housing Company, Ghana Reinsurance Company, and TDC—paid dividends, contributing a total of GH¢28.7 million. This figure is a stark contrast to the billions of cedis in losses recorded by other SOEs, raising concerns about their impact on Ghana’s economy.

Government pushes for financial discipline

To address the crisis, Dr Forson outlined a plan to restore financial stability in SOEs. He stressed the need for improved leadership, operational efficiency, and corporate governance training to ensure strict regulatory compliance.

He also reminded SOE heads of their obligation under Section 95 of the Public Financial Management Act, 2016 (Act 921), which mandates the timely submission of audited financial statements.

“The Ministry of Finance will work closely with SIGA to enforce this regulatory requirement,” he stated, adding that financial discipline would be crucial in reversing the losses of state-owned enterprises.